Taobao Large-Sum Traders Placed on the Taxation Radar
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TAIPEI, Taiwan -- As China's largest consumer-to-consumer (C2C) site Taobao Marketplace ([...]) has reached commercial success in Taiwan, tax-skirting and large-sum subscribers who use the site's services have been put on the local government's radar.
After establishing footholds in Taiwan in 2009, Taobao Marketplace has created dashing annual sales figures of NT$50 billion and already has upwards of 600,000 subscribers in Taiwan, according to a financial statement released by the company.
Founded by Hangzhou-based Alibaba Group, China's biggest e-commerce service provider, in 2003, Taobao Marketplace is described as the Chinese equivalent of C2C sites such as eBay and Amazon.
Looking to reap tax rewards, the financially fraught Ministry of Finance (MOF) was expected to set a dragnet to catch local Taobao Marketplace users who are believed to be mostly street vendors in night markets touting an assortment of small products and daily necessities including cheap clothing, toothpastes and stationery.
Citing a unnamed legislator, the United Evening News reported that Finance Minister Chang Sheng-ford ([...]) recently ordered subordinate national taxation bureaus to raid tax-evading, large-sum users of Taobao Marketplace, which is feared by authorities to be a tax haven.
The unnamed legislator revealed that those orders placed in Taiwan on Taobao Marketplace with duty-paying values of as much as NT$3,000 will be levied a sales tax of 5 percent. …